Sometimes in an investment, one should have some time to really look through in detail. Time was something I did not really have in the past month, but yet I did some investment - Jobstreet.

In any case, I have looked at the continued dwindling of Jobstreet, even after my purchase. It is now trading at RM2.41 (4 Mar 2014) - be prepared for it to drop further, it seems.

Only after the drop, I decided to read in more detail of the entire issue - this is a mistake, one should not do this! One should look and look, to be accurate, read again.

Anyway, this is what I have found - based on the information that is available.

The above shows the ESOS that is outstanding as at 31 December 2013. That would add to the number of shares after new shares are issued to the minority shareholders which Jobstreet, the holding company does not own 100%. In the sale of its business, Jobstreet is doing an exercise and selling the business in its entirety - 100% of all the subsidiaries. Hence, it will need to issue new shares in exchange for the shares in Jobstreet Vietnam, Philippines and Indonesia it does not own. After the purchases, the total number of shares that are outstanding would have increased to 708,244.


However, this does not include the ESOS that can be exercised by the ESOS holders. Hence, I have done a simple calculation as below and try to explain at my level best.

Table 3

What the above Table 3 depicts is that how many shares would be outstanding assuming that all the ESOS shares are exercised (which I think would be the case as the ESOS are all in the money).

How much dividend would be paid out per share after the full exercise of the ESOS? RM2.34.

However, as the ESOS would involve new cash being injected for the subscription, there would be a net addition of RM11.39 million of new cash from ESOS (first line of Table 3). That translates to RM0.02 per total shares (RM11,390 / 725,440) of Jobstreet.

Based on what's left after the dividend, assuming it gets the full value of its Net Asset Per share of around RM0.32 - RM0.33, the intrinsic value would be somewhere around RM2.68. (Note that I normally do not try to guess the intrinsic value of company except for this situation, which is possible)

I am trying to trust that the management would have concluded the sale by 2nd quarter of 2014 and that is some 4 months down the line at the most. With that, I am now thinking that the currently traded price has a decent what you call "Margin of Safety".

Note: Of course, I am not able to know how many new ESOS would be added between 1 Jan 2014 until now as that has never been revealed by the management of Jobstreet. Of all the good things, that the management of Jobstreet had done, this piece of information is not complete and it is forcing the shareholders to do their own calculation - not right!

Anyhow, I do not really care about the PN17 in this case as it is about the lack of strategic business than it in financial difficulties.